COPENHAGEN -- Lego, the maker of the ubiquitous
building blocks and other toys, will outsource most of its production to
Flextronics over the next three years, with the EMS
provider taking over some Lego plants. Other production will be moved to Flextronics’
plants in Eastern Europe and Mexico.
No financial terms were immediately disclosed.
The move breaks new ground for Flextronics. "It's not electronics, it's plastic molding," said Alexander Blanton, an analyst at Ingalls & Synder told TheStreet.com. "This is the first major piece of business that I have seen of that nature."